Ever hear the statement, “The forex market is very technical.” Or how about this one, “Technical analysis works really well in the forex market because it’s more technical than anything.” Usually statements like these come from promoters of indicators or systems that rely on some combination of special oscillators or other proprietary formulas. For someone who is just starting out … Read More
Spencer Trade Review–$GILD $DHI
Steve Spencer reviews trading opportunities in GILD and DHI from November 12th 2012. Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 16 years. His email is [email protected]. No relevant positions
Why Choose Just One Pair?
A very frequent question I get from traders starting out is, “Which pairs are the best ones to trade?”. Another subtle example of the conditioning people have accepted from equities trading. Modern Portfolio Theory along with just about every personal finance book and blog has pushed the idea of “diversification”. This means don’t bet on just one instrument, spread your … Read More
Losing Trades Are Good For Your Trading Plan?
One of the most overlooked opportunities in the speculative world of trading is the valuable information hidden within trading losses. Less experienced traders usually have a hate/hate relationship with losing trades and don’t want to spend much time thinking about them. We are conditioned to be winners! Losing trades are part of doing business, a necessary expense or as many … Read More
Reading the Tape Questions and Trading from the Middle East
Dear Bella, I can’t find the words for thanking you and the folks at SMB for the great free educational staff you post daily on your blog, I just can’t. I want to thank you also for the great course of reading the tape I have taken , It didn’t teach me how to read the tape it did taught … Read More
Trader Disney Land
Hey Mike, I recently blew my profits gain from the past 3 months in one stubborn trade. And not I dare not go in again as I fear I could be wrong again and lost money. My system was right but my emotions was burnt. This is not the first time I lost a trade but somehow I couldn’t pick … Read More
Greed Is Bad. Just Ask My Sanity.
One of the most iconic images people have of Wall Street is the scene from the first Wall Street film where Gordon Gecko delivers his infamous monologue that begins like this, “Greed, for the lack of a better word, is Good”. Since greed and it’s first cousin fear still drive markets, it does serve a purpose in terms of creating … Read More
IF I Develop a Trading Plan THEN My Results Will Improve: EXPE (10.26.12)
I tweeted this week that trading is about having a series of if/then statements and not about making predictions. In practical terms this means that traders are game planning for every stock on their watch list. They are making decisions on how to trade each name based on price action, market conditions and news catalysts. For every stock I look … Read More